What Is the Interest Rate on RV Loans?

An RV loan provides financing for the purchase of a recreational vehicle, which encompasses motorhomes, travel trailers, and campers. These loans allow individuals to acquire an RV without paying the full price upfront, spreading the cost over an extended period. Interest rates represent a significant part of the overall expense of an RV loan, as they determine the additional amount paid beyond the principal. These rates can vary considerably based on numerous influencing factors.

Key Factors Influencing RV Loan Rates

A borrower’s credit score is a primary consideration, as it indicates creditworthiness and the likelihood of loan repayment. Individuals with higher credit scores, typically 720 and above, generally qualify for lower interest rates. Those with scores in the fair or poor ranges (e.g., 640-679 or 300-639) can expect significantly higher rates.

The duration of the loan, known as the loan term, also impacts the interest rate. RV loan terms can range from 60 months (five years) to 240 months (20 years). While a longer term can result in lower monthly payments, it typically leads to a higher overall interest paid over the life of the loan. Conversely, shorter terms usually carry higher monthly payments but reduce the total interest expense.

A substantial down payment can also lead to a more favorable interest rate. Lenders perceive a larger down payment as reducing their risk. This upfront investment decreases the loan amount needed, potentially lowering monthly payments. Some lenders may even offer no-down-payment options, but these typically come with higher interest rates.

The type of RV being financed affects the interest rate, including whether it is new or used. New RVs often come with higher price tags. Used RVs typically have lower purchase prices and depreciate less quickly. Some lenders may have restrictions on financing older RVs, such as those over 15 years old.

Different types of lenders, including traditional banks, credit unions, online lenders, and RV dealerships, offer varying rates. Credit unions often provide competitive rates. Dealerships may offer promotional rates but can sometimes have higher overall rates and fees. Broader market conditions and the federal interest rate also play a role, influencing the general cost of borrowing across the financial industry.

Current RV Loan Interest Rate Ranges

As of August 2025, RV loans can have interest rates as low as 5.99% for borrowers with excellent credit scores, typically in the 720-850 range. Borrowers with good credit (680-719) might see average rates around 11.86%, while those with fair credit (640-679) could face rates averaging 14.09%. For individuals with poor credit (300-639), average rates can be as high as 16.19%, with some unsecured loan rates reaching up to 36%.

The average RV loan rate generally falls within a range of 9.5% to 13.5%, with common loan terms often spanning 120 to 180 months. RV loan rates are typically higher than those for standard auto loans due to recreational vehicles being considered luxury items and the complexities involved in repossession if a borrower defaults. However, RV loan rates are usually lower than those for unsecured personal loans, which can have average interest rates around 12.57% as of August 2025.

Rates are subject to change based on economic shifts and individual lender policies. These figures serve as general indicators, and prospective buyers are encouraged to compare offers from multiple lenders to secure the most favorable terms for their specific financial situation.

The RV Loan Application Process

Identifying potential lenders is the first step in securing an RV loan. Each type of lender may offer different rates and terms, making it beneficial to explore various options. Getting pre-approved from a financial institution like a credit union or bank before visiting a dealership can provide stronger negotiating power.

To apply for an RV loan, applicants need to provide specific documentation to verify their financial standing and identity. This includes proof of income, such as recent pay stubs, W-2 forms, or tax returns. Lenders also require employment verification and personal identification, such as a valid driver’s license. Information about the RV itself, including its make, model, year, and vehicle identification number (VIN), will also be necessary.

The application process starts with an inquiry or pre-approval application, which involves a credit check to assess the applicant’s credit score and history. Lenders will also evaluate the applicant’s debt-to-income ratio to ensure the loan payments are affordable. Once approved, the lender will outline the loan amount, interest rate, and repayment terms. Finalizing the loan involves reviewing and signing the loan agreement, after which funds are disbursed within a few business days. Gathering all required documents in advance and comparing offers from multiple lenders can help streamline the process and ensure favorable loan terms.